DOL Proposes New Rule for Classifying Workers as Employees or Independent Contractors Under FLSA

The Department of Labor’s (DOL) Wage and Hour Division (WHD) has published a long-expected proposed interpretive rule outlining factors it will look at in determining whether an individual should be classified as an employee or independent contractor under the Fair Labor Standards Act (FLSA).

According to Secretary of Labor Eugene Scalia, the new rule is designed to “simplify, clarify, and harmonize principles that federal courts have espoused for decades” in making classification decisions, and is not an attempt to radically change classification. At the same time, Secretary Scalia’s commentary expresses hope that the rule would help states and policymakers considering worker classification determinations outside of the FLSA context, a veiled reference perhaps to California’s controversial new “ABC” law.

Members of the Center for Workplace Compliance (CWC) can read more here.